Interest rates go up! Now 4.75%

manhattan

true,
i wont be buying at -10% myself though,-30% and i maybe interested!

meanmachine_2

If a rate rise means house price inflation subsides to around 0-3% pa I'll be happy with that.

That's all I want.

Some indices are now registering 8-10%. That's incredibly damaging because it makes a massive crash more likely.

You can't have it both ways.

PoorDave

manhattan wrote:

true,
i wont be buying at -10% myself though

But if enough non-MSE/HPC'ers do then you won't ever see a bigger drop.

Think how many people out there might be wannabe FTB's, but aren't looking on MSE or equivalent. Actually the way it seems, you might all be posting on here!

In my opinion, just speculation

biting_the_bullet

Oh my, what a wonderful day - from a purely selfish point of view you see. I've just reserved a fixed rate of 5.18%, available for the next 3 months.

This rise of .25% puts my position in a hell of a stronger stance now!! I'm gonna rip the guts out of some greedy asking prices, thats for sure.

manhattan

PoorDave wrote:

But if enough non-MSE/HPC'ers do then you won't ever see a bigger drop.

Think how many people out there might be wannabe FTB's, but aren't looking on MSE or equivalent. Actually the way it seems, you might all be posting on here!

In my opinion, just speculation

possibly,but a 10% drop is not enough for us to buy a starter home for us and our 2 children.

so it maybe a long wait,but if thats what it takes.......

Byrneand_2

Oh my God no!!

How will I cope with another £50 a month on my mortgage. I suppose I could start with my kidneys - but can only really sell one of them.

Yes - rates have gone up which as one poster pointed out should help strengthen the economy in the long term. But its not going to make much difference to most people. Most people will have factored in at least a 1% movement in interest rates into their payment calculations and will be able to flex spending to meet that. Equally the news on high inflation is positive in some respects as it makes the value of your debt lower.

Actually - quite a result, especially when combined with the relatively strong (against forecast) house price performance in 06.

sanfrancisco

Byrneand wrote:

Equally the news on high inflation is positive in some respects as it makes the value of your debt lower.

You are wrong. It is only wage inflation which erodes debt. Wage inflation is very steady at the moment at about 4%.

biting_the_bullet

The significant thing here, is that the buy to let brigades yields have just been dented, just like that. In an enviroment where things are getting harder and harder for speculators to make a few quid renting out property, this may just be the reason to f**k them off out of it, and leave homes for folk to live in.
Also, for the potential owner occupiers, affordability has just been lowered. Guess what?? If buy to letters are getting out and owner occupiers can't afford crazy prices, then who will be buying??? Result= Prices Falling and about time too.

lister

Byrneand wrote:

Equally the news on high inflation is positive in some respects as it makes the value of your debt lower.

Erm - no.

High wage inflation makes the value of your debt lower. High price inflation doesn't. As we are constantly being told that second round effects are minimal to the current price inflation we are seeing, it isn't, at present at least, feeding into debt erosion. Ultimately of course if high inflation persists, wage inflation almost has to follow suit - but that will bring associated job losses and recession as companies cut costs.

Rock or hard place?

Pobby

Can`t say I am gonna shed many tears over the BTL brigade!However,there are some loverly people who post on debt free wannabes and I,in all honesty,hope that they are not badly affected by this new increase.